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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Polymetal International Plc | LSE:POLY | London | Ordinary Share | JE00B6T5S470 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 215.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPOLY
RNS Number : 3698Z
Polymetal International PLC
14 March 2017
Release IMMEDIATE time Date 14 March 2017
Polymetal International plc
Ore Reserves, Mineral Resources and Exploration update as at 1 January 2017
Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to provide an Exploration update for the year ended 31 December 2016, and report its Ore Reserves and Mineral Resources as at 1 January 2017 in accordance with the JORC Code (2012).
2016 HIGHLIGHTS
-- Polymetal's Ore Reserves decreased by 5% to 19.8 Moz of gold equivalent (GE) mainly due to mining depletion and a downgrade at Varvara which were partially offset by reserve additions from the new acquisition at Komar, Dolinnoye and an upgrade at Svetloye;
-- Mineral Resources (additional to Ore Reserves) increased by 29% to 16.5 Moz of GE, mainly driven by the acquisitions of Kapan and Komar, as well as the initial Mineral Resources estimates at Levoberezhny and Lichkvaz;
-- Mineral Resources (inclusive of Ore Reserves) at gold equivalent grew by 5% to 36.4 Moz;
-- The average grade in Ore Reserves decreased by 8% to 3.8 g/t GE mainly due to additions from Komar. The average grade for Mineral Resources decreased by 11% to 4.2 g/t GE, mainly as a result of additions from Kapan;
-- In 2016, we continued to use conservative gold and silver price assumptions in our reserve and resource estimates, US$1,200/oz and US$16/oz, respectively (2015: US$1,100/oz and US$15/oz);
-- Exploration drilling volumes increased by 40% year-on-year to 324 km, as the Company expanded its scope of exploration to include newly acquired assets and joint ventures;
-- 9 new licences were obtained over the course of 2016, bringing the total number to 86, of which 47 currently involve active exploration activities.
"In the course of 2016 we significantly strengthened the resource base of our operating mines and successfully advanced our long-term growth strategy." - said Vitaly Nesis, Group CEO of Polymetal, commenting on the results. "In 2017, we plan to focus on converting resource additions into reserves growth. The key elements of this plan involve initial reserve estimates at Nezhda and Kapan as well as material resource-to-reserve conversion at Kapan, Lichkvaz, Omolon and Komar."
Ore Reserves and Mineral Resources summary(1)
Hot Features
Premium
1 January 1 January Change
2017 2016
----------------------------------- ---------- ---------- -------
Ore Reserves (Proved + Probable),
gold equivalent Moz 19.8 20.8 -5%
Gold, Moz 17.6 17.7 -1%
Silver, Moz 163.0 207.2 -21%
Copper, Kt 65.4 85.4 -23%
Mineral Resources (Measured
+ Indicated + Inferred), gold
equivalent Moz 16.5 12.8 +29%
Gold, Moz 14.4 11.3 +28%
Silver, Moz 87.5 48.6 +80%
Copper, Kt 206.7 132.0 +57%
----------------------------------- ---------- ---------- -------
(1) Mineral Resources are additional to Ore Reserves. Mineral Resources and Ore Reserves of Lead and Zinc are not presented due to the immateriality and are not included in the calculation of the gold equivalent. PGM Mineral Resources are presented separately and are not included in the calculation of the gold equivalent.
Differences are due to rounding.
FY2017 OUTLOOK
In 2017, Polymetal will continue to invest in exploration with the goal to expand the pace and scope of drilling, as well as prospect evaluation. The key objectives are as follows:
-- To achieve resource-to-reserve conversions and resource upgrades at our brownfield projects with particular focus on shorter life-of-mine assets. At Omolon the focus will be on Irbychan and Yolochka; at Voro - on Saum and Tamunier; at Okhotsk - on Levoberezhny, Gyrbykan, and Maimakan-Kundumi; at Dukat - on Primorskoye;
-- To initiate a comprehensive exploration campaign at the deeper levels of Dukat with a goal to extend the scope of resource estimates at least 300 meters below current underground workings;
-- To produce an initial JORC reserve and resource estimate at Nezhda JV's Zone 1 and continue drilling on smaller, potentially mineralised zones;
-- To complete at least 25 km of diamond drilling at the Prognoz silver deposit;
-- To publish a JORC-compliant reserve estimate and a combined LOM plan for Kapan and Lichkvaz;
-- To complete a step-out drilling campaign at Komar and update the reserve and resource estimates for the deposit;
-- To continue step-out and deep-level drilling at Kyzyl. Ore Reserves and Mineral Resources by metal, 1 January 2017 Ore Reserves Mineral Resources ------------------------------------------------------------ ------------ ----------------- Gold 89% 87% Silver 9% 7% Copper 2% 6% Total 100% 100% ------------------------------------------------------------ ------------ -----------------
Ore Reserves reconciliation, gold equivalent, Moz
Ore Reserves, Gold/silver price Depletion Revaluation Initial reserve Ore Reserves,
01.01.2016 ratio change(1) estimates 01.01.2017
---------------------- ---------------------- --------- ----------- ---------------------- ----------------------
20.8 -0.2 -1.5 -0.3 1.0 19.8
---------------------- ---------------------- --------- ----------- ---------------------- ----------------------
(1) Please refer to the Appendix for the gold equivalent conversion ratios and applicable methodology.
Mineral Resources and Ore Reserves as at 1 January 2017(1)
Tonnage Grade Content
---------------------- ---------- ----------------------- --------
Mt GE, g/t GE, Moz
Mineral Resources
Measured 8.0 1.9 0.5
Indicated 34.6 3.4 3.8
Measured + Indicated 42.7 3.1 4.3
Inferred 78.2 4.9 12.2
Measured + Indicated
+ Inferred 120.9 4.2 16.5
Ore Reserves
Proved 61.5 2.6 5.2
Probable 98.9 4.6 14.6
Proved + Probable 160.5 3.8 19.8
---------------------- ---------- ----- --------------------------
(1) Mineral Resources and Ore Reserves in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. Mineral Resources and Ore Reserves of Lead and Zinc are not presented due to the immateriality and are not included in the calculation of the gold equivalent. PGM Mineral Resources are presented separately and are not included in the calculation of the gold equivalent.
Discrepancies in calculations are due to rounding.
Exploration areas and volumes (mine site exploration excluded) (1) Drilling, km
---------------
2016 2015
------- ------
Brownfield
Voro 13.7 17.5
North Kaluga - 5.2
Voro flanks 1.9 3.1
Tamunier 6.2 6.9
Other 5.6 2.3
Varvara 75.8 62.1
Varvara 23.6 32.3
Tarutin 0.9 5.5
Dolinnoye 6.7 24.3
Komar 44.6 -
Dukat hub 51.3 38.2
Dukat flanks 17.2 19.6
Lunnoye flanks 13.8 -
Primorskoye 11.0 5.0
Perevalnoye - 10.0
Terem 4.7 1.5
Other 4.5 2.1
Albazino 27.9 16.0
Okhotsk hub 28.2 11.9
Khotorchan/Gyrbykan 7.0 2.8
Svetloye 0.6 3.6
Kirankan 1.6 2.3
Maimakan-Kundumi 2.5 -
Levoberezhny 8.3 0.2
Other 8.2 3.0
Omolon hub 32.8 16.3
Olcha - 0.7
Oroch 1.7 -
Burgali - 1.6
Yolochka 5.9 4.7
Irbychan 11.6 5.7
Nevenrekan 8.4 -
Other 5.1 3.6
Kyzyl project 10.5 45.6
Bakyrchik 5.7 36.1
Bolshevik 4.9 9.5
Subtotal 240.1 207.6
-------------------------------------------------------------------- ------- ------
Greenfield
Urals 6.2 8.3
Svetlobor (PGM) 0.1 2.4
Urals regional 6.1 5.9
North-West 12.8 -
Karelian PGM (inc. Viksha) 10.0 -
Other 2.9 -
Nezhda 39.4 -
Nezhda 39.4 -
Armenia 25.2 15.8
Lichkvaz 24.0 15.8
Other 1.2 -
Subtotal 83.6 24.1
-------------------------------------------------------------------- ------- ------
Total 323.7 231.7
-------------------------------------------------------------------- ------- ------
(1) Discrepancies in calculations are due to rounding.
EXPLORATION RESULTS
Dukat hub
-- 17 km have been drilled at the near flanks of the Dukat property at the Khrustalny, Mglystiy and Smeliy ore zones. Following on from last year's exploration, additional ore bodies have been traced to the north at Khrustalny. In 2017, we plan to carry out prospecting activities at the deeper levels of Dukat to confirm the presence of a second horizon of mineralisation and other targets around the Dukat hub area.
-- At the Primorskoye property (250 km from the Omsukchan concentrator), 11 km of exploration drilling was carried out in ore zones 1 and 3, along with detailed metallurgical and geomechanical studies. A bonanza section with anomalous high grade content was identified (17.9 g/t for gold, 4700 g/t for silver), holding more than 60% of all resources of ore zone 1. Mineral resource estimate comprised 311 Koz GE at 19.6 g/t GE. In 2017, we plan to continue drilling in order to expand the resources and produce a JORC-compliant reserve estimate for the property in 2018.
Omolon
-- An increased reserve estimate of 213 Koz GE at 2.3 g/t GE at Sopka (180 km from Kubaka mill) was a result of revaluation which made feasible the restart of open-pit mining, now scheduled for 2017.
-- A resource estimate at the Central, Northern and Eastern zones of the Irbychan deposit (veinlet-disseminated mineralisation type) has been completed, with the feasibility study being prepared. We plan to issue an initial reserve estimate in 2017 with the goal to start open-pit mining at the property in 2H 2019.
-- At Yolochka (veined and veinlet-disseminated ore bodies of low-sulphide gold-silver formation), as a result of infill drilling (6 km), new rich ore zones were discovered on the western flank. Core drilling will continue in 2017 with an aim to expand the resource base and prepare for the reserve and resource estimate in 2017.
-- At Nevenrekan, 8 km of drilling was completed at ore zone 2, as well as zones 1 and 5. In ore zone 1, high-grade ore sections were discovered, which, with further exploration, are expected to increase the resource base of the property. Drilling will continue in 2017 with a goal to upgrade resources into higher categories and prepare for the reserve estimate in 2018.
Okhotsk
-- At Maimakan-Kundumi (a new property approx. 30 km from Avlayakan), as a result of 2.5 km of prospecting drilling, 3 ore bodies containing high-grade gold and silver mineralisation were identified. An initial mineral resource estimate for the property has been prepared and comprises 106 Koz of GE at an average grade of 13.7 g/t GE with further mineral potential estimated at 100-500 Koz of gold at an average grade of 6-15 g/t. In 2017, prospecting and evaluation activities will continue with 13 km of planned drilling.
-- Polymetal will continue exploration at areas adjacent to the Khakanja plant with the goal to expand its mine life. Further exploration potential is associated with Khotorchan and Gyrbykan (180 km from the Khakanja mill), where new ore intercepts have been identified. The anticipated mineral potential for the properties is estimated at 100-200 Koz of gold at average grades of 10-15 g/t. In 2017, prospecting and evaluation activities are set to continue.
-- At Svetloye, advanced exploration activities yielded an increase in reserves for the second consecutive year, adding 157 Koz of GE through positive mine-to-model reconciliation and additional step-out drilling.
-- Evaluation activities at Levoberezhny (35 km from Svetloye) yielded positive results, confirming its future prospects. An initial mineral resource estimate at the property comprises 378 Koz of GE at 4.2 g/t GE. Further metallurgical testing and exploration activities are set to continue in 2017 with a goal to gain approval on the feasibility study and prepare an ore reserve estimate.
Albazino
-- Exploration drilling at the Farida and Ekaterina 1 & 2 ore zones was mainly focused on the deposit to prepare ore bodies for open-pit mining. The Company continues to work on outlining ore bodies and on upgrading resource categories. In 2017, we will continue exploration works within the license area in order to establish new prospective ore bodies.
Voro hub
-- At the recently acquired Saum property with VMS-style mineralisation, we plan to perform metallurgical studies and near-deposit geophysics in 2017.
-- 6 km of drilling has been completed at Tamunier, identifying 38 ore intercepts that meet the project targets. The traced mineralisation along strike is between 120 m to 800 m with the thickness varying between 0.5 m - 9.6 m, explored at a depth of 30-320 m. The average grade traced through the ore bodies varies from 1.02 - 23.0 g/t. In 2017, drilling aimed at outlining ore bodies will continue. A reserve estimate is expected in 2017.
Varvara hub
-- At the newly acquired Komar (187 km from Varvara plant), detailed in-fill and step-out exploration drilling (45 km) at the flanks of the deposit have been finished, leading to initial reserve and resource estimate in 2016. As at 1 January 2017 ore reserves and mineral resources comprise 873 Koz of gold at 1.8 g/t and 517 Koz of gold at 2.2 g/t, respectively. Additional prospecting activities aimed at the discovery of new ore bodies and the expansion of the resource base around the property are set to continue in 2017.
-- Additional exploration drilling totalling 7 km was conducted at the North-Eastern and Northern areas of the Dolinnoye deposit within the optimised pit outline that was established based on exploration results from 2015. An initial reserve and resource estimate was prepared by CSA Global based on Polymetal's share in the deposit, amounting to 101 Koz of GE at 2.4 g/t GE in reserves and 247 Koz of GE at of 2.5 g/t GE in resources.
-- Exploration activities at Tarutin (150 km from Varvara plant) have been finalised. The feasibility study for the property has been completed and the deposit has now a clear path to production as another component of the hub strategy at Varvara.
Kapan/Lichkvaz
-- At Kapan, a revised JORC-compliant resource estimate was prepared by Polymetal and as at 1 January 2017 mineral resources comprise 1,928 Koz of GE (excludes zinc) at an average GE grade of 4.0 g/t.
-- An initial resource estimate for Lichkvaz (70 km from Kapan plant) prepared by CSA Global Pty Ltd. comprises 582 Koz of GE at 4.2 g/t GE. 24 km of further in-fill and step-out drilling aimed at identifying and delineating ore bodies has been completed in 2016 with a goal to establish an additional resources upgrade of existing resources into a higher category.
-- Polymetal plans to conduct additional drilling in 2017 to produce a JORC-compliant ore reserve estimate and combined life-of-mine plan for Lichkvaz and Kapan in Q3 2017.
Kyzyl
-- At Bakyrchik, drill testing of several targets near the main deposit (Promezhutochny and Gluboky) have yielded positive results. Out of 35 drill holes completed in 2016, 26 have ore intercepts with an average thickness varying from 0.5 m to 6.75 m, and gold content varying between 2.4 g/t to 24.2 g/t. In 2017, step-out drilling of existing ore bodies will continue to prepare the property for mining.
-- At Bolshevik, a satellite deposit to Bakyrchik, we completed drilling and sampling assessments paving the way for the preparation of a feasibility study, which is expected to be translated into an initial resource estimate in 2017.
PGM's
-- The exploration licence for the Viksha project has been successfully converted into a mining licence effective from July 18, 2016. An initial Mineral Resource estimate for the PGM Viksha project in Karelia comprises 9.5Moz of PdEq, making Viksha one of the largest open-pittable PGM resources in the world. The depth of the open-pit is 150 m below surface with an average thickness of 7 m. In 2017, we will proceed with further exploration program. A feasibility study for an ore reserve estimate is planned for Q3 2019.
-- Prospecting drilling activities at Kuolisma property, a new ore licen e area, totalled 9 km as a result of which platinum and palladium mineralisation zones were identified.
Prognoz
-- Polymetal acquired a 5% indirect interest in Prognoz in 2017. It is the largest undeveloped primary silver deposit in Russia, estimated to hold 292 Moz of silver at 586 g/t in JORC mineral resources as estimated by Micon (not included in the statement as of 1 January 2017). Polymetal plans to undertake 25 km of diamond drilling, and complete a technical study resulting in an externally audited JORC-compliant reserves estimate for the property before 31 March 2019. Preparations are already underway for the 2017 drilling campaign.
Nezhda
-- During the year, Polymetal performed an extensive exploration campaign at Nezhda JV obtaining significant additional comfort on the geology and metallurgy of the deposit.
-- Diamond drilling totaling 39 km was completed at ore zone 1 of the Nezhda deposit in 2016. 141 ore intercepts have been traced in the southeast part of ore zone 1 with an average thickness of 5.3 m, and average grades from 2.3 g/t to 74.5 g/t for gold and 1.7 g/t to 54.6 g/t for silver. At the northwestern part of ore zone 1, 121 ore intercepts have been identified with an average thickness of 20.9 m, and grades from 1.1 g/t to 18.7 g/t for gold and 1.4 to 49.6 g/t for silver. In 2017 further exploration of ore zone 1 and adjacent areas is planned to expand open-pittable resources.
Ore Reserves as at 1 January 2017(1)
Tonnage Grade Content
--------------------- -------- -------------------------- ---------------------------------
Kt Au, Ag, Cu, GE, Au, Ag, Cu, GE,
g/t g/t % g/t Koz Koz Kt Koz
--------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
Proved
Standalone
Mines
Albazino 2,660 3.9 - - 3.9 336 - - 336
Mayskoye 3,530 6.9 - - 6.9 783 - - 783
Dukat hub 7,870 4.3 189 74,565 - 1,091
Dukat 5,100 0.5 280 - 3.9 89 45,892 - 635
Lunnoye 2,060 1.4 283 - 4.9 90 18,725 - 321
Goltsovoye 260 - 434 - 5.6 - 3,723 - 48
Arylakh 450 0.7 424 - 5.9 10 6,225 - 87
Varvara hub 20,310 1.2 753 - 11.2 807
Varvara (3) 13,470 0.9 - 0.41 1.0 385 - 11.2 438
Komar (4) 2,030 1.1 - - 1.1 74 - - 74
Maminskoye
(5) 4,810 1.9 - - 1.9 295 - - 295
Omolon hub 10,450 2.7 771 12,378 - 911
Birkachan 4,940 1.8 6 - 1.9 289 882 - 299
Sopka Kvartsevaya 2,780 1.4 64 - 2.1 129 5,696 - 190
Oroch 810 3.7 163 - 5.9 96 4,198 - 151
Olcha 190 8.0 21 - 8.2 46 124 - 48
Dalneye (8) 1,120 1.9 28 - 2.2 70 1,018 - 78
Tsokol Kubaka 230 6.4 12 - 6.6 46 86 - 47
Burgali (9) 380 7.9 31 - 8.2 95 375 - 98
Voro hub 9,000 1.7 484 863 - 491
Voro 9,000 1.7 3 - 1.7 484 863 - 491
Okhotsk hub 5,970 3.2 589 3,287 - 617
Svetloye 4,870 2.8 4 - 2.9 446 586 - 447
Avlayakan 230 14.8 122 - 16.2 108 886 - 118
Ozerny (11) 290 1.8 28 - 2.0 17 258 - 19
Khakanja (12) 580 1.0 83 - 1.8 18 1,556 - 34
Development
and exploration
projects
Veduga (14) 170 2.6 - - 2.6 14 - - 14
Kutyn (15) 1,580 3.3 - - 3.3 169 - - 169
--------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
Total Proved 61,540 2.6 4,089 91,094 11.2 5,221
--------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
Probable
Standalone
Mines
Albazino 12,280 4.3 - - 4.3 1,696 - - 1,696
Mayskoye 2,940 6.9 - - 6.9 646 - - 646
Dukat hub 5,680 5.3 140 67,822 - 963
Dukat 3,980 0.7 394 - 5.4 90 50,384 - 690
Lunnoye 910 1.4 276 - 4.8 42 8,117 - 143
Goltsovoye 200 - 363 - 4.7 - 2,315 - 30
Arylakh 240 1.0 276 - 4.4 8 2,147 - 34
Tonnage Grade Content
---------------------- -------- -------------------------- ---------------------------------
Kt Au, Ag, Cu, GE, Au, Ag, Cu, GE,
g/t g/t % g/t Koz Koz Kt Koz
---------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
Perevalnoye
(2) 350 - 428 - 5.9 - 4,860 - 67
Varvara hub 37,230 1.8 1,928 269 35.4 2,114
Varvara (3) 12,400 1.0 - 0.52 1.3 408 - 24.6 526
Komar (4) 12,970 1.9 - - 1.9 799 - - 799
Maminskoye
(5) 9,890 1.9 - - 1.9 618 - - 618
Tarutin (6) 660 0.1 13 1.62 3.3 2 269 10.8 70
Dolinnoye (7) 1,310 2.4 - - 2.4 101 - - 101
Omolon hub 1,950 8.9 529 2,159 - 555
Birkachan 970 9.8 36 - 10.3 305 1,101 - 318
Sopka Kvartsevaya 120 4.0 137 - 5.8 16 545 - 23
Oroch 10 2.5 178 - 4.8 1 78 - 2
Olcha 230 9.1 22 - 9.4 66 163 - 68
Tsokol Kubaka 460 8.0 9 - 8.1 117 128 - 119
Burgali (9) 160 4.7 28 - 5.0 24 144 - 25
Voro hub 1,840 6.3 267 1,267 18.9 370
Voro 1,520 4.1 4 - 4.1 197 211 - 199
North Kaluga
(10) 320 6.7 101 5.81 16.4 70 1,056 18.9 171
Okhotsk hub 2,590 3.1 256 368 - 258
Svetloye 2,510 2.8 3 - 2.8 227 240 - 228
Avlayakan 80 11.2 50 - 11.8 29 129 - 30
Development
and exploration
projects
Kyzyl project
(Bakyrchik)
(13) 29,150 7.7 - - 7.7 7,254 - - 7,254
Veduga (14) 3,200 5.2 - - 5.2 535 - - 535
Kutyn (15) 2,070 3.3 - - 3.3 217 - - 217
---------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
Total Probable 98,930 4.6 13,469 71,887 54.3 14,608
---------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
Proved + Probable
Standalone
Mines
Albazino 14,940 4.2 - - 4.2 2,032 - - 2,032
Mayskoye 6,470 6.9 - - 6.9 1,429 - - 1,429
Dukat hub 13,550 4.7 329 142,388 - 2,054
Dukat 9,080 0.6 330 - 4.5 178 96,276 - 1,325
Lunnoye 2,970 1.4 281 - 4.8 132 26,843 - 464
Goltsovoye 460 - 404 - 5.2 - 6,038 - 77
Arylakh 690 0.8 373 - 5.4 18 8,372 - 122
Perevalnoye
(2) 350 - 428 - 5.9 - 4,860 - 67
Varvara hub 57,540 1.6 2,681 269 46.6 2,921
Varvara (3) 25,870 1.0 - 0.48 1.2 792 - 35.8 964
Komar (4) 15,000 1.8 - - 1.8 873 - - 873
Maminskoye
(5) 14,700 1.9 - - 1.9 913 - - 913
Tarutin (6) 660 0.1 13 1.62 3.3 2 269 10.8 70
Tonnage Grade Content
--------------------- -------- -------------------------- ---------------------------------
Kt Au, Ag, Cu, GE, Au, Ag, Cu, GE,
g/t g/t % g/t Koz Koz Kt Koz
--------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
Dolinnoye (7) 1,310 2.4 - - 2.4 101 - - 101
Omolon hub 12,400 3.7 1,300 14,537 - 1,466
Birkachan 5,910 3.1 10 - 3.2 594 1,983 - 617
Sopka Kvartsevaya 2,900 1.5 67 - 2.3 145 6,242 - 213
Oroch 820 3.7 163 - 5.8 97 4,276 - 154
Olcha 420 8.6 22 - 8.8 113 286 - 116
Dalneye (8) 1,120 1.9 28 - 2.2 70 1,018 - 78
Tsokol Kubaka 690 7.5 10 - 7.6 164 214 - 166
Burgali (9) 540 7.0 30 - 7.2 119 519 - 123
Voro hub 10,840 2.5 751 2,131 18.9 861
Voro 10,520 2.0 3 - 2.0 681 1,075 - 690
North Kaluga
(10) 320 6.7 101 5.81 16.4 70 1,056 18.9 171
Okhotsk hub 8,560 3.2 845 3,655 - 876
Svetloye 7,380 2.8 3 - 2.8 674 826 - 675
Avlayakan 310 13.8 103 - 15.0 137 1,015 - 148
Ozerny (11) 290 1.8 28 - 2.0 17 258 - 19
Khakanja (12) 580 1.0 83 - 1.8 18 1,556 - 34
Development
and exploration
projects
Kyzyl project
(Bakyrchik)
(13) 29,150 7.7 - - 7.7 7,254 - - 7,254
Veduga (14) 3,370 5.0 - - 5.0 549 - - 549
Kutyn (15) 3,650 3.3 - - 3.3 386 - - 386
--------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
Total Proved
+ Probable 160,470 3.8 17,558 162,980 65.4 19,829
--------------------- -------- ----- ----- ----- ----- ------- -------- ----- -------
(1) Ore Reserves are reported in accordance with the JORC Code (2012). Discrepancies in calculations are due to rounding.
(2) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Ag = US$15/oz, Pb = US$1,700/t. Revised estimate was not performed due to lack of material changes.
(3) Cu grade in Ore Reserves only represents average grade of Float feed. Ore Reserves of Float feed: 2.7 Mt Proved and 4.7 Mt Probable.
(4) Initial estimate prepared by Polymetal as at 01.07.2016. Price: Au= US$1,100/oz. Revised estimate as at 01.01.2017.
(5) Estimate prepared by Polymetal as at 01.01.2014. Price: Au= US$1,300/oz. Revised estimate was not performed due to lack of material changes.
(6) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au= US$1,100/oz, Ag = US$15/oz, Cu = US$5,000/t. Revised estimate was not performed due to lack of material changes. Ore Reserves are presented in accordance with the Company's ownership equal to 75%.
(7) Initial estimate prepared by CSA as at 28.07.2016. Price: Au= US$1,100/oz. Revised estimate prepared by Polymetal as at 01.01.2017 (only stoping). Ore Reserves are presented in accordance with the Company's ownership equal to 25%.
(8) Stockpiled Ore Reserves.
(9) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au= US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
(10) Initial estimate prepared by Polymetal as at 01.07.2014. Price: Au= US$1,300/oz, Ag = US$20/oz, Cu = US$7,000/t, Zn = US$1,700/t. Revised estimate was not performed due to lack of material changes.
(11) Stockpiled Ore Reserves.
(12) Stockpiled Ore Reserves.
(13) Estimate prepared by RPA Inc. as at 01.01.2015. Price: Au = US$1,200/oz. Revised estimate was not performed due to lack of material changes.
(14) Initial estimate prepared by Snowden as at 01.01.2014. Price: Au= US$1,300/oz. Revised estimate prepared by Polymetal as at 01.01.2017 (only stoping without Au price change). Ore Reserves are presented in accordance with the Company's ownership equal to 42.65%.
(15) Initial estimate prepared by Snowden as at 01.01.2015. Price: Au= US$1,300/oz (only Ore Reserves estimate for Heap Leach). Revised estimate was not performed due to lack of material changes.
Mineral Resources as at 1 January 2017(1)
Tonnage Grade Content
------------------- -------- --------------------------- ---------------------------------
Kt Au, Ag, Cu, GE, Au, Ag, Cu, GE,
g/t g/t % g/t Koz Koz Kt Koz
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Measured
Standalone
Mines
Albazino 30 4.3 - - 4.3 5 - - 5
Dukat hub 100 13.8 - 3,310 - 42
Goltsovoye 100 - 1,075 - 13.8 - 3,310 - 42
Varvara hub 6,860 1.4 198 - 21.1 299
Varvara (4) 5,880 0.8 - 0.40 1.3 154 - 21.1 255
Maminskoye
(6) 980 1.4 - - 1.4 44 - - 44
Omolon hub 230 4.6 22 1,055 - 34
Sopka Kvartsevaya 200 2.7 136 - 4.3 17 856 - 27
Oroch 30 4.9 198 - 7.5 5 199 - 8
Voro hub 80 2.1 6 11 - 6
Voro 80 2.1 4 - 2.1 6 11 - 6
Development
and exploration
projects
Kutyn (22) 740 4.1 - - 4.1 97 - - 97
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Total Measured 8,040 1.9 327 4,375 21.1 483
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Indicated
Standalone
Mines
Albazino 2,220 5.1 - - 5.1 361 - - 361
Dukat hub 510 19.4 62 19,887 - 317
Goltsovoye 40 - 1,025 - 13.1 - 1,277 - 16
Primorskoye
(3) 470 4.2 1,238 - 20.0 62 18,610 - 301
Varvara hub 18,310 1.6 772 90 33.5 941
Varvara (4) 12,630 1.1 - 0.57 1.4 447 - 27.8 581
Komar (5) 3,540 2.1 - - 2.1 238 - - 238
Maminskoye
(6) 1,150 1.5 - - 1.5 55 - - 55
Tarutin (7) 450 0.1 6 1.25 2.5 1 90 5.7 37
Dolinnoye
(8) 540 1.8 - - 1.8 31 - - 31
Omolon hub 600 9.8 121 5,671 - 189
Sopka Kvartsevaya 110 4.4 161 - 6.3 16 589 - 23
Oroch 180 3.5 314 - 7.7 21 1,840 - 45
Irbychan
((10) 240 8.9 189 - 11.3 68 1,439 - 86
Nevenrekan
(12) 70 7.1 784 - 15.1 16 1,803 - 35
Voro hub 1,690 5.6 196 1,984 16.1 305
Voro 30 1.9 5 - 2.0 2 4 - 2
Tamunier
(13) 870 4.6 23 - 4.8 130 655 - 133
Saum (14) 790 2.5 52 2.04 6.7 65 1,325 16.1 171
Tonnage Grade Content
------------------- -------- --------------------------- ---------------------------------
Kt Au, Ag, Cu, GE, Au, Ag, Cu, GE,
g/t g/t % g/t Koz Koz Kt Koz
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Armenia 6,480 4.1 640 7,545 26.6 858
Kapan (18) 3,650 3.1 52 0.52 4.5 361 6,079 18.9 522
Lichkvaz
(19) 2,830 3.1 16 0.27 3.7 279 1,466 7.7 336
Development
and exploration
projects
Kyzyl project
(Bakyrchik)
(20) 2,740 6.2 - - 6.2 545 - - 545
Kutyn (22) 2,070 4.2 - - 4.2 279 - - 279
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Total Indicated 34,620 3.4 2,977 35,178 76.3 3,796
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Measured + Indicated
Standalone
Mines
Albazino 2,250 5.1 - - 5.1 366 - - 366
Dukat hub 610 18.4 62 23,197 - 360
Goltsovoye 140 - 1,060 - 13.6 - 4,587 - 59
Primorskoye
(3) 470 4.2 1,238 - 20.0 62 18,610 - 301
Varvara hub 25,170 1.5 970 90 54.6 1,241
Varvara (4) 18,510 1.0 - 0.48 1.4 601 - 48.9 836
Komar (5) 3,540 2.1 - - 2.1 238 - - 238
Maminskoye
(6) 2,130 1.4 - - 1.4 99 - - 99
Tarutin (7) 450 0.1 6 1.25 2.5 1 90 5.7 37
Dolinnoye
(8) 540 1.8 - - 1.8 31 - - 31
Omolon hub 830 8.4 143 6,726 - 223
Sopka Kvartsevaya 310 3.3 145 - 5.0 33 1,445 - 50
Oroch 210 3.7 297 - 7.6 26 2,039 - 52
Irbychan
(10) 240 8.9 189 - 11.3 68 1,439 - 86
Nevenrekan
(12) 70 7.1 784 - 15.1 16 1,803 - 35
Voro hub 1,770 5.5 202 1,995 16.1 311
Voro 110 2.1 4 - 2.1 7 14 - 7
Tamunier
(13) 870 4.6 23 - 4.8 130 655 - 133
Saum (14) 790 2.5 52 2.04 6.7 65 1,325 16.1 171
Armenia 6,480 4.1 640 7,545 26.6 858
Kapan (18) 3,650 3.1 52 0.52 4.5 361 6,079 18.9 522
Lichkvaz
(19) 2,830 3.1 16 0.27 3.7 279 1,466 7.7 336
Development
and exploration
projects
Kyzyl project
(Bakyrchik)
(20) 2,740 6.2 - - 6.2 545 - - 545
Kutyn (22) 2,810 4.2 - - 4.2 376 - - 376
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Total Measured
+ Indicated 42,660 3.1 3,304 39,553 97.3 4,279
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Inferred
Standalone
Mines
Albazino 7,610 5.3 - - 5.3 1,300 - - 1,300
Tonnage Grade Content
------------------- -------- --------------------------- ---------------------------------
Kt Au, Ag, Cu, GE, Au, Ag, Cu, GE,
g/t g/t % g/t Koz Koz Kt Koz
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Mayskoye 8,450 11.9 - - 11.9 3,239 - - 3,239
Dukat hub 900 9.9 44 19,835 - 286
Dukat 450 1.9 833 - 11.8 27 11,933 - 169
Lunnoye 230 1.8 346 - 6.0 13 2,629 - 46
Goltsovoye 80 - 940 - 12.1 - 2,484 - 32
Arylakh 90 0.9 639 - 8.7 2 1,782 - 24
Perevalnoye
(2) 20 - 564 - 7.7 - 379 - 5
Primorskoye
(3) 30 1.8 787 - 11.8 1 629 - 9
Varvara hub 26,230 1.7 1,223 125 43.3 1,439
Varvara (4) 19,720 1.1 - 0.61 1.4 726 - 37.4 906
Komar (5) 3,670 2.4 - - 2.4 279 - - 279
Tarutin (7) 350 0.1 11 1.71 3.5 1 125 5.9 39
Dolinnoye
(8) 2,490 2.7 - - 2.7 216 - - 216
Omolon hub 920 12.1 271 7,510 - 359
Sopka Kvartsevaya 50 2.3 98 - 3.7 4 150 - 5
Oroch 210 6.2 509 - 12.9 42 3,489 - 88
Olcha 160 10.0 44 - 10.5 53 236 - 56
Tsokol Kubaka 70 9.3 17 - 9.5 22 40 - 22
Burgali (9) 50 11.9 15 - 12.0 21 26 - 21
Irbychan
(10) 20 19.3 265 - 22.6 10 141 - 12
Yolochka
(11) 240 11.1 10 - 11.2 85 73 - 86
Nevenrekan
(12) 120 8.6 861 - 17.3 33 3,355 - 68
Voro hub 3,930 4.0 490 1,096 1.0 502
Tamunier
(13) 3,880 3.9 8 - 3.9 488 1,041 - 493
Saum (14) 50 1.4 33 1.82 4.9 2 55 1.0 8
Okhotsk hub 3,202 5.2 518 1,477 - 534
Avlayakan 20 32.7 133 - 34.3 19 77 - 20
Levoberezhny
(15) 2,800 4.0 13 - 4.2 365 1,208 - 378
Kirankan
(16) 142 6.5 8 - 6.7 30 39 - 30
Maimakan-Kundumi
(17) 240 13.5 20 - 13.7 105 154 - 106
Armenia 12,860 4.0 1,128 17,845 65.2 1,651
Kapan (18) 11,390 2.6 47 0.50 3.8 934 17,253 57.0 1,406
Lichkvaz
(19) 1,470 4.1 13 0.55 5.2 194 622 8.2 245
Development
and exploration
projects
Kyzyl project
(Bakyrchik)
(20) 11,420 7.0 - - 7.0 2,562 - - 2,562
Veduga (21) 580 4.1 - - 4.1 77 - - 77
Kutyn (22) 2,110 4.0 - - 4.0 273 - - 273
Total Inferred 78,212 4.9 11,124 47,918 109.4 12,221
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Measured + Indicated + Inferred
Standalone
Mines
Albazino 9,860 5.3 - - 5.3 1,665 - - 1,665
Tonnage Grade Content
------------------- -------- --------------------------- ---------------------------------
Kt Au, Ag, Cu, GE, Au, Ag, Cu, GE,
g/t g/t % g/t Koz Koz Kt Koz
------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
Mayskoye 8,450 11.9 - - 11.9 3,239 - - 3,239
Dukat hub 1,510 13.3 106 43,032 - 645
Dukat 450 1.9 833 - 11.8 27 11,933 - 169
Lunnoye 230 1.8 346 - 6.0 13 2,629 - 46
Goltsovoye 220 - 1,015 - 13.0 - 7,071 - 91
Arylakh 90 0.9 639 - 8.7 2 1,782 - 24
Perevalnoye
(2) 20 - 564 - 7.7 - 379 - 5
Primorskoye
(3) 500 4.0 1,216 - 19.6 64 19,239 - 311
Varvara hub 51,400 1.6 2,193 215 97.8 2,680
Varvara (4) 38,230 1.1 - 0.53 1.4 1,327 - 86.2 1,742
Komar (5) 7,210 2.2 - - 2.2 517 - - 517
Maminskoye
(6) 2,130 1.4 - - 1.4 99 - - 99
Tarutin (7) 800 0.1 8 1.45 2.9 3 215 11.6 76
Dolinnoye
(8) 3,030 2.5 - - 2.5 247 - - 247
Omolon hub 1,750 10.3 414 14,235 - 582 Sopka Kvartsevaya 360 3.2 139 - 4.8 37 1,595 - 55 Oroch 420 4.9 403 - 10.2 68 5,528 - 141 Olcha 160 10.0 44 - 10.5 53 236 - 56 Tsokol Kubaka 70 9.3 17 - 9.5 22 40 - 22 Burgali (9) 50 11.9 15 - 12.0 21 26 - 21 Irbychan (10) 260 9.6 194 - 12.0 78 1,580 - 98 Yolochka (11) 240 11.1 10 - 11.2 85 73 - 86 Nevenrekan (12) 190 8.0 832 - 16.5 50 5,157 - 102 Voro hub 5,700 4.4 692 3,091 17.1 812 Voro 110 2.1 4 - 2.1 7 14 - 7 Tamunier (13) 4,750 4.0 11 - 4.1 618 1,696 - 626 Saum (14) 840 2.5 51 2.03 6.6 67 1,380 17.1 179 Okhotsk hub 3,202 5.2 518 1,477 - 534 Avlayakan 20 32.7 133 - 34.3 19 77 - 20 Levoberezhny (15) 2,800 4.0 13 - 4.2 365 1,208 - 378 Kirankan (16) 142 6.5 8 - 6.7 30 39 - 30 Maimakan-Kundumi (17) 240 13.5 20 - 13.7 105 154 - 106 Armenia 19,340 4.0 1,769 25,422 91.8 2,510 Kapan (18) 15,040 2.7 48 0.50 4.0 1,295 23,333 75.9 1,928 Lichkvaz (19) 4,300 3.4 15 0.37 4.2 474 2,089 15.9 582 Development and exploration projects Kyzyl project (Bakyrchik) (20) 14,160 6.8 - - 6.8 3,107 - - 3,107 Veduga (21) 580 4.1 - - 4.1 77 - - 77 Kutyn (22) 4,920 4.1 - - 4.1 649 - - 649 Total Measured + Indicated + Inferred 120,872 4.2 14,429 87,472 206.7 16,501 ------------------- -------- ----- ------ ----- ----- ------- ------- ------ -------
(1) ineral Resources are reported in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. Discrepancies in calculations are due to rounding.
(2) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Ag = US$15/oz, Pb = US$1,700/t. Revised estimate was not performed due to lack of material changes.
(3) Estimate prepared by CSA Global Pty Ltd as at 01.01.2017. Price: Au = US$1,250/oz, Ag = US$16 /oz.
(4) Cu estimate is listed for fresh ore and powder ore that has high Cu grade (total Mineral Resources for fresh ore and powder ore with high Cu grade of 10.5 and 5.7 Mt of ore respectively).
(5) Initial estimate prepared by Polymetal as at 01.07.2016. Price: Au = US$1,100/oz. Revised estimate as at 01.01.2017.
(6) Estimate prepared by Polymetal as at 01.01.2014. Price: Au = US$1,300/oz. Revised estimate was not performed due to lack of material changes.
(7) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au= US$1,100/oz, Ag = US$15/oz, Cu = US$5,000/t. Revised estimate was not performed due to lack of material changes. ineral Resources are presented in accordance with the Company's ownership equal to 75%.
(8) Initial estimate prepared by CSA as at 28.07.2016. Price: Au= US$1,100/oz. Revised estimate prepared by Polymetal as at 01.01.2017 (only stoping). ineral Resources are presented in accordance with the Company's ownership equal to 25%.
(9) Estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
(10) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
(11) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
(12) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
(13) Estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
(14) Initial estimate prepared by Polymetal as at 01.01.2017. ineral Resources are presented in accordance with the Company's ownership equal to 80%.
(15) Initial estimate prepared by Polymetal as at 01.01.2017.
(16) Estimate prepared by Snowsden as at 01.07.2011. Price: Au = US$1,150/oz, Ag = US$18.5/oz. Revised estimate was not performed due to lack of material changes.
(17) Initial estimate prepared by Polymetal as at 01.01.2017.
(18) Initial estimate prepared by CSA as at 31.12.2014. Price: Au= US$1,300/oz, Ag = US$20/oz, Cu = US$6,600/t, Zn = US$2,200/t. Revised estimate prepared by Polymetal as at 01.01.2017 (only stoping). Zinc in the amount of 263 kt is not included in GE calculation.
(19) Initial estimate prepared by CSA as at 01.01.2016. Price: Au= US$1,100/oz, Ag = US$15/oz, Cu = US$5,000/t. Revised estimate was not performed due to lack of material changes.
(20) Estimate prepared by RPA Inc. as at 01.01.2015. Price: Au = US$1,200/oz. Revised estimate was not performed due to lack of material changes.
(21) Initial estimate prepared by Snowden as at 01.01.2014. Price: Au= US$1,300/oz. Revised estimate prepared by Polymetal as at 01.01.2017. Mineral Resources are presented in accordance with the Company's ownership equal to 42.65%.
(22) Initial estimate for open pit prepared by Snowden, for underground by CSA Global Pty Ltd as at 01.01.2015. Price: Au = US$1,300/oz. Revised estimate was not performed due to lack of material changes.
PGM Mineral Resources as at 1 January 2017(1)
Tonnage Grade Content
------------------- -------- ------------------------------------ -----------------------------------
Mt Pd, Pt, Au, Cu, PdEq(2) Pd, Pt, Au, Cu, PdEq,
g/t g/t g/t , g/t Moz Moz Moz
% Moz Kt
------------------- -------- ----- ----- ----- ----- -------- ----- ----- ----- ------ ------
Indicated
Viksha project(3)
Viksha 27 0.6 0.2 0.1 0.10 1.4 0.5 0.1 0.1 29.6 1.3
Kenti - - - - - - - - - - -
Shargi - - - - - - - - - - -
------------------- -------- ----- ----- ----- ----- -------- ----- ----- ----- ------ ------
Total Indicated 27 0.6 0.2 0.1 0.10 1.4 0.5 0.1 0.1 29.6 1.3
------------------- -------- ----- ----- ----- ----- -------- ----- ----- ----- ------ ------
Inferred
Viksha project(3)
Viksha 52 0.6 0.2 0.1 0.09 1.3 1.0 0.3 0.2 49.5 2.3
Kenti 98 0.6 0.2 0.1 0.11 1.3 1.9 0.6 0.4 109.6 4.3
Shargi 36 0.6 0.2 0.1 0.08 1.3 0.7 0.2 0.1 31.7 1.5
------------------- -------- ----- ----- ----- ----- -------- ----- ----- ----- ------ ------
Total Inferred 186 0.6 0.2 0.1 0.10 1.3 3.6 1.1 0.7 190.8 8.1
------------------- -------- ----- ----- ----- ----- -------- ----- ----- ----- ------ ------
Indicated + Inferred
Viksha project(3)
Viksha 79 0.6 0.2 0.1 0.10 1.4 1.5 0.4 0.3 79.1 3.6
Kenti 98 0.6 0.2 0.1 0.11 1.3 1.9 0.6 0.4 109.6 4.3
Shargi 36 0.6 0.2 0.1 0.08 1.3 0.7 0.2 0.1 31.7 1.5
------------------- -------- ----- ----- ----- ----- -------- ----- ----- ----- ------ ------
Total Indicated
+ Inferred 213 0.6 0.2 0.1 0.10 1.3 4.2 1.4 0.9 220.6 9.5
------------------- -------- ----- ----- ----- ----- -------- ----- ----- ----- ------ ------
(1) ineral Resources are reported in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. Discrepancies in calculations are due to rounding.
(2) PdEq is calculated using the following formula: PdEq = Pd(g/t) + Pt(g/t) *1.57 + Au(g/t) * 1.61 + Cu(%) * 2.33.
(3) Initial estimate prepared by AMC Consultants as at 01.03.2015 using COG (PdEq) = 0.5 g/t/. Revised estimate was not performed due to lack of material changes.
This estimate was prepared by employees of JSC Polymetal Management Company and JSC Polymetal Engineering, subsidiaries of the Company, led by Mr. Valery Tsyplakov, who assumes overall responsibility for the Mineral Resources and Ore Reserves Report.
Mr. Tsyplakov is the employed full-time as the Managing Director of JSC Polymetal Engineering and has more than 16 years' experience in gold, silver and polymetallic mining. He is a Member of the Institute of Materials, Minerals & Mining (MIMMM), London, and a Competent Person under the JORC Code.
Listed below are other Competent Persons employed by the Company that are responsible for relevant research on which the Mineral Resources and Ore Reserves estimate is based:
-- Geology and Mineral Resources - Roman Govorukha, Head of Geologic Modelling and Monitoring Department, MIMMM, with 16 years' relevant experience;
-- Mining and Ore Reserves - Igor Epshteyn, Head of Mining Process Department, MIMMM, with 35 years' relevant experience;
-- Concentration and Metals - Igor Agapov, Deputy Director of Science and Technology, MIMMM, with 19 years' relevant experience;
-- Environmental issues - Tatiana Kuleshova, Director for Ecology, MIMMM, with 26 years' relevant experience.
All the above mentioned Competent Persons have sufficient experience that is relevant to the style of mineralisation and types of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code).
All Competent Persons have given their consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Metals prices used in estimating Mineral Resources and Ore Reserves are listed below (unless otherwise indicated in the footnotes):
Au = US$1,200/oz;
Ag = US$16.0/oz;
Cu = US$4,500/t;
Gold equivalent data is based on "Conversion ratios of metals into gold equivalent" provided in the Appendix below. Lead and zinc Ore Reserves and Mineral resources have not been assessed due to immateriality and are not included in the calculation of the gold equivalent.
Enquiries
Media Investor Relations
---------------- ----------------- ----------------------------------------------------
FTI Consulting +44 20 3727 1000 Polymetal ir@polymetalinternational.com
Leonid Fink Maxim Nazimok
Jenny Payne Evgenia Onuschenko +7 812 313 5964 (Russia)
Maryana Nesis +44 20 7016 9503 (UK)
---------------- ----------------- -------------------- ------------------------------
Joint Corporate Brokers
----------------------------------- ----------------------------------------------------
Morgan Stanley RBC Europe Limited
Sam McLennan Tristan Lovegrove
Richard Brown +44 20 7425 8000 Marcus Jackson +44 20 7653 4000
---------------- ----------------- -------------------- ------------------------------
FORWARD-LOOKING STATEMENTS
THIS RELEASE MAY INCLUDE STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, "FORWARD-LOOKING STATEMENTS". THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS RELEASE. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS "TARGETS", "BELIEVES", "EXPECTS", "AIMS", "INTENDS", "WILL", "MAY", "ANTICIPATES", "WOULD", "COULD" OR "SHOULD" OR SIMILAR EXPRESSIONS OR, IN EACH CASE THEIR NEGATIVE OR OTHER VARIATIONS OR BY DISCUSSION OF STRATEGIES, PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. THESE FORWARD-LOOKING STATEMENTS ALL INCLUDE MATTERS THAT ARE NOT HISTORICAL FACTS. BY THEIR NATURE, SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS BEYOND THE COMPANY'S CONTROL THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY'S PRESENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY WILL OPERATE IN THE FUTURE. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE. THERE ARE MANY FACTORS THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGE IN THE COMPANY'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED.
Appendix
Reporting of Metal Equivalents
Gold equivalent conversion ratio
AuEqv=Me/k
Where Me is the evaluated metal content (silver g/t, copper %)
Where k is the silver to gold equivalent conversion rate that is calculated considering the difference in metals value issuing the following formula:
For silver: k=((Au price/31.1035 - (Au price /31.1035 - treatment charge Au)*(Royalty Au)/100 - (treatment charge Au))*(recovery Au)/((Ag price/31.1035 - (Ag price/31.1035 - treatment charge Ag)*(Royalty Ag)/100 - (treatment charge Ag))*(recovery Ag)),
for copper (%): k = 100*((Au price/31.1035-treatment charge Au)*(1-royalty Au%/recovery Au%)*(recovery Au%))/((Cu price-treatment charge Cu)*(1-royalty Cu%/recovery Cu%)*(recovery Cu%)),
where Royalty is the mineral extraction tax at applicable rate, recovery - the life-of-mine expected recovery of the respective metal in the processing technology applied.
Silver/gold equivalent and copper/gold equivalent conversion ratios:
Deposit Ore processing technology k
------------------- -------------------------------- -----------
Ag Cu
------------------- -------------------------------- ---- -----
Dukat Conventional flotation 84
Cyanidation+Merrill Crowe
Lunnoye process 81
Goltsovoye Conventional flotation 78
Cyanidation+Merrill Crowe
Arylakh process 81
Perevalnoye Conventional flotation 73
Primorskoye Conventional flotation 78
Powder ore with high copper
Varvara content (1) 0.67
Primary ore with high
copper content - conventional
flotation 0.67
Primary ore - conventional
Tarutin flotation 94 0.53
Oxidised ore - conventional
flotation 94 0.53
Birkachan Cyanidation arbon-in-pulp 81
Heap leaching+ arbon-in-colon 106
Cyanidation+Merrill Crowe
Sopka Kvartsevaya process 76
Heap leaching+Merrill
Crowe process 110
Cyanidation+Merrill Crowe
Oroch process 76
Cyanidation+Merrill Crowe
Olcha process 86
Cyanidation+Merrill Crowe
Dalneye process 99
Heap leaching+Merrill
Crowe process 130
Tsokol Kubaka Cyanidation arbon-in-pulp 92
Cyanidation+Merrill Crowe
Burgali process 115
Cyanidation+Merrill Crowe
Irbychan process 80
Yolochka Cyanidation arbon-in-pulp 91
Cyanidation+Merrill Crowe
Nevenrekan process 98
Heap leaching+Merrill
Voro Crowe process 233
Cyanidation arbon-in-pulp 117
North Kaluga Conventional flotation 91 0.68
Tamunier Conventional flotation 199
Saum Conventional flotation 67 0.60
Heap leaching+Merrill
Svetloye Crowe process 639
Cyanidation+Merrill Crowe
Avlayakan process 86
Cyanidation+Merrill Crowe
Ozerny process 107
Cyanidation+Merrill Crowe
Khakanja process 102
Levoberezhnoye Cyanidation arbon-in-pulp 88
Cyanidation+Merrill Crowe
Kirankan (2) process 60
Cyanidation+Merrill Crowe
Maimakan-Kundumi process 86
Kapan Conventional flotation 82 0.70
Lichkvaz Conventional flotation 100 0.59
(1) This type of ore is currently not being processed, it is stockpiled and reflected only in Mineral Resources.
(2) Silver to gold equivalent conversion ratios were not recalculated to deposits that were evaluated in 2011-2012.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCQZLBFDXFEBBK
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